Highlights of the Result:
• Production impacted by gas-supply limitations and maintenance activities.
• Improvement in Y-o-Y performance despite maintenance shutdown.
• Gross Revenue: N33.20billion, compared to N25.71billion in Dec 2021 (29% increase YoY).
• Operating Income: N7.2billion, compared to N6.7 billion in Dec 2021 (an increase of 7.7% YoY) attributable to higher revenues from increased production.
• Net Profit/(Loss) Before Tax: (N16.23) billion, compared to (N19.74billion) in Dec 2021 (a 18% improvement YoY).
• EBITDA: 43%, a decrease from 58% in Dec 2021, earnings from sales in the period impacted by maintenance activity.
- Total Assets: N270.92 billion, compared to N238.62 billion as at 2021FY (13.5% YTD growth).
- Bank Loans: N140.61 billion, compared to N129.04billion as at 2021FY impacted by increase in exchange rate as well as increasing cost of fund (driven by MPC Rate changes).
Group Financial Highlights
Notore Chemical Industries Limited (Notore) recorded group YTD revenue of ₦33.20 billion for the period ended 31st December 2022, compared to ₦25.71 billion for the same period in 2021 representing an 29% increase Y-o-Y. The Group recorded a net profit/(loss) before tax of (₦16.23) billion for its fourth quarter ended 31st December 2022 compared to (₦19.74) billion in same period during the prior year.
During the fourth quarter ended 31st December 2022 the Plant was shut down for preventative maintenance to increase operational efficiencies for financial year 2023. As a result, there was limited production of Urea during the last quarter.
Market Operational Developments
Notore successfully completed its preventative maintenance shutdown in January 2023. The Company is committed to continuous improvement and expects an upturn in production output once gas-supply limitations are resolved.
Furthermore, Notore intends to optimize the production of its product offerings including Notore NPK fertilizers, Seeds, and Rice with a focus on increasing profitability. The Company completed phase 3 of the Notore Rice pilot program.
Notore’s market environment remains supportive, with the increase in food and plant production being a top priority in Nigeria. Like several developing countries in Africa, Nigeria has great fertilizer market potential as it is a key input to boosting Nigeria’s agricultural productivity and food sufficiency.
Outlook for the Year
With respect to the fertilizer market, the Nigerian fertilizer market will continue to grow as food security is of utmost importance to the Federal Government. A recent report from UNICEF projected nearly 25 million Nigerians are at risk of facing hunger between June and August 2023 if urgent action is not taken. The Federal Government continues to deepen its investments in the Agricultural sector through policies and initiatives to further boost the agricultural value chain.
Notore intends to continue to prioritize the domestic market, improve its product offerings and leverage opportunities to meet demand both in the domestic and West African markets.
Mrs. Olufela Olatoye-Sosan
Head, Corporate Communications
Investor Relations Contact
+234 807 328 6641
+234 908 876 4526
About Notore Chemical Industries Plc
Notore is a vertically integrated agro-allied and chemicals business situated in Onne (near Port Harcourt), Rivers State in South-South Nigeria and is engaged primarily in the production and sale of fertilizer products. Notore’s vision is to be the number one company by market share and profitability in our chosen businesses and a significant contributor to the development of Africa and our mission is to enhance the quality of life.
The Group’s current business comprises fertilizer production, supply and trading of fertilizer, and power. The Group’s primary fertilizer products are granular Urea and Ammonia. The Group operates from its Onne Complex in the heart of the Niger Delta, Africa’s most prolific oil and gas producing region.
The Onne Complex is located within the Onne Oil and Gas Free Zone, which provides significant tax benefits and advanced logistics solutions for international distribution of products. The Onne Complex comprises of approximately 560 hectares of land owned by the Group with a 2km of waterfront including the Notore Port and a dedicated jetty (with a capacity to accommodate vessels with a maximum volume of between 25,000 MT and 35,000 MT) owned by the Group. The Notore Port gives the Group easy access to the Atlantic Ocean for easy import of raw materials and export of the Group’s products.
The Group produces Urea, NPK and Ammonia and owns a Urea producing plant in Onne, Rivers State with a current annual design production capacity of approximately 500,000 MTPA of Urea and 330,000 MTPA of Ammonia. The Group also has an installed 2,000 MTD NPK blending plant. The Group currently supplies and sells its fertilizer products in all thirty-six (36) States and Abuja, the Federal Capital Territory. The Group trades and exports its manufactured fertilizer products to West Africa, South Africa, South America, and Europe.
For more information, visit www.notore.com
This announcement contains or will contain forward-looking statements which reflect management’s expectations regarding the Company’s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expects”, “intend” “estimate”, “project”, “target”, “risks”, “goals” and similar terms and phrases have been used to identify the forward– looking statements. These statements reflect management’s current beliefs and are based on information currently available to management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Notore Chemical Industries Plc cautions readers that several factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Company’s disclosure materials filed from time to time with Securities & Exchange Commission in Nigeria. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.